:no_upscale():quality(75))
Photo credit: Wikicommons
KBS Strategic Opportunity REIT closed its Israeli bond offering—a first for a US-based REIT—after raising a total of $249M.
KBS raised 127.7M shekels, or $32.6M, in the second, public phase of its offering, and $216M in the first phase, which was only open to Israeli institutional investors.
The interest rate on the bonds is 4.25%, The Real Deal reports. While KBS is the first US REIT to raise money in Israel’s debt markets, it’s not the first US real estate firm to tap into the cheap capital source. The Moinian Group, for example, raised $361M last May.
Victory Consulting Group’s Gal Amit and Rafael Lipa advised KBS on its offering, while Israeli financial services firms Poalim IBI and Leumi Partners underwrote the issuance. [TRD]
